Correlation Between Payoneer Global and WM Technology

Can any of the company-specific risk be diversified away by investing in both Payoneer Global and WM Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Payoneer Global and WM Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Payoneer Global Warrant and WM Technology, you can compare the effects of market volatilities on Payoneer Global and WM Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Payoneer Global with a short position of WM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payoneer Global and WM Technology.

Diversification Opportunities for Payoneer Global and WM Technology

0.3

Correlation Coefficient

Payoneer Global  WM Technology

Weak diversification

The 3 months correlation between Payoneer and MAPSW is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global Warrant and WM Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WM Technology and Payoneer Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Payoneer Global Warrant are associated (or correlated) with WM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WM Technology has no effect on the direction of Payoneer Global i.e., Payoneer Global and WM Technology go up and down completely randomly.

Pair Corralation between Payoneer Global and WM Technology

If you would invest  2.15  in WM Technology on October 25, 2024 and sell it today you would earn a total of  2.84  from holding WM Technology or generate 132.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.26%
Values	Daily Returns

Payoneer Global Warrant  vs.  WM Technology

Payoneer Global Warrant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Payoneer Global Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Payoneer Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

WM Technology

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WM Technology are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, WM Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Payoneer Global and WM Technology

The main advantage of trading using opposite Payoneer Global and WM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payoneer Global position performs unexpectedly, WM Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in WM Technology will offset losses from the drop in WM Technology's long position.

The idea behind Payoneer Global Warrant and WM Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .